dikaios1517 on Nostr: That's not how a "fixed supply" works. If Bitcoin demonetizes gold, then sure, folks ...
That's not how a "fixed supply" works. If Bitcoin demonetizes gold, then sure, folks might stop mining it for a while, because there will be more than enough supply to meet the current demand.
However, because the price denominated in Bitcoin drops, people will start using gold for things that it has never been used for before, because it was too expensive to make economic sense.
With more use-cases comes an increase in demand, which eventually leads to more mining again, increasing the supply.
Fixed supply is referring to a supply that CANNOT be increased. Not a supply no one is currently interested in increasing.
However, because the price denominated in Bitcoin drops, people will start using gold for things that it has never been used for before, because it was too expensive to make economic sense.
With more use-cases comes an increase in demand, which eventually leads to more mining again, increasing the supply.
Fixed supply is referring to a supply that CANNOT be increased. Not a supply no one is currently interested in increasing.